SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?


To: eddie r gammon who wrote (12104)12/1/1998 12:42:00 PM
From: accountclosed  Respond to of 86076
 
tip and i mean selling the calls in a buy/write.

the calls do go up, but usually not as much as the underlying.



To: eddie r gammon who wrote (12104)12/1/1998 12:47:00 PM
From: yard_man  Read Replies (1) | Respond to of 86076
 
You need to look at the total position erg. The stock has also appreciated -- as the calls go deeper and deeper into the money they lose time premium -- that's what a buy/write is for -- otherwise you are simply trading the call options against the stock. That can be profitable, too -- but that is not a 'traditional buy/write.'